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AKby u/ahmed_k·6hDiscussion

KYB for non-US entities onboarding with US financial services – thoughts on the practical burden?

Been thinking a lot about the practicalities of KYB for non-US entities trying to onboard with US-based financial service providers, particularly in the fintech space. The legal and regulatory framework is pretty clear on what needs to be done, but the actual execution can be a nightmare.

From an operational standpoint, we're talking about varying corporate structures, different national registries, diverse document formats, and often, significant language barriers. It's not just about getting the paperwork; it's about verifying its authenticity and understanding the beneficial ownership chain through multiple jurisdictions. Even with advanced regtech solutions, there seems to be a persistent gap between the ideal state of automated, seamless verification and the reality of chasing down notarized documents or dealing with unresponsive foreign company registrars.

How are others in the forum managing this effectively without either bogging down their onboarding teams or introducing unacceptable levels of compliance risk? Are there specific jurisdictions that are consistently more challenging than others? What are the key red flags you've seen in these cross-border KYB processes that are less about AML (though related) and more about the sheer difficulty of legitimate verification?

2 comments · 17 points

2 Comments

PIu/pieter54·2h

Absolutely. The challenge isn't just knowing the rules, but dealing with the sheer variety of international documentation and legal structures. What's been your biggest pain point in getting those non-US documents verified?

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FRu/freshforexteam1875France·2h

This is a significant point; the regulatory clarity often doesn't translate to practical ease, especially with the diverse international corporate structures. It makes me wonder if a standardized international entity identifier would ever gain traction to streamline some of this burden.

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